We'll probably wind up bailing out all three. Personally, I think Chapter 11 is the best approach, because it would allow the automakers to jettison their hideously overpriced labor contracts and crippling pension and health plans, but I strongly doubt Congress will let that happen.
This "liberal, pinko, leftie, commie" is with ya on this one. :) Union contracts shouldn't be pared down to a point that no one wants em (or would be stupid to take em), thereby defeating the purpose, but a start over from square 1 is just what the auto industry needs right now, not a license for "more of the same". The economy coincidentally (or not, I don't quite understand all the reasons) tanked at the same time that people are moving away from Hummers and into cars less dependent on gas. If they were forced to start over, more energies would be devoted to much healthier cars.
Honestly I have not had enough car experience to say anything about Chrysler or GM. Only dealt with Ford (and they suck when it comes to cars. Trucks seem to do better) and Toyota. Still, I would love to have another Camry (the same one in fact - 1991 Camry wagon) if I can.
Without answering the poll first, and not even pretending to know what I'm talking about regarding economics, here's what I think.
- GM, Chrysler: prepackaged Chapter 11 with stiff restrictions. The executives get a big fat goose egg for screwing up for so long, AND they lose their jobs. The replacement executives get no bonuses as the govt and bankruptcy court runs the finance part of the company. Try not to leave workers without any benefits even though some of them are union and were living in fantasyland for the past 20 years. Govt guarantees loans to finance the return to profitability (no one else will lend them money).
- Ford: nothing would thrill me more than for Ford to liquidate tomorrow, but in reality, probably the same as the other two. And it's worse for Ford because the Fords won't own that company anymore.
I don't think being bought by a foreign automaker would be good. That would lessen competition. It may do something better for work relations than the current union situation, though (unions are another argument for another post).
If anyone needs a "bailout," it's the workers who will have nothing after this supposed bankruptcy takes hold, and it wasn't even directly their fault things happened like that. At least at that point, taxpayer money would be aiding the TAXPAYER.
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no subject
Date: 19 Nov 2008 18:18 (UTC)no subject
Date: 19 Nov 2008 22:39 (UTC)no subject
Date: 20 Nov 2008 01:37 (UTC)no subject
Date: 19 Nov 2008 18:25 (UTC)no subject
Date: 19 Nov 2008 19:48 (UTC)no subject
Date: 19 Nov 2008 21:59 (UTC)no subject
Date: 20 Nov 2008 00:05 (UTC)Without answering the poll first, and not even pretending to know what I'm talking about regarding economics, here's what I think.
- GM, Chrysler: prepackaged Chapter 11 with stiff restrictions. The executives get a big fat goose egg for screwing up for so long, AND they lose their jobs. The replacement executives get no bonuses as the govt and bankruptcy court runs the finance part of the company. Try not to leave workers without any benefits even though some of them are union and were living in fantasyland for the past 20 years. Govt guarantees loans to finance the return to profitability (no one else will lend them money).
- Ford: nothing would thrill me more than for Ford to liquidate tomorrow, but in reality, probably the same as the other two. And it's worse for Ford because the Fords won't own that company anymore.
I don't think being bought by a foreign automaker would be good. That would lessen competition. It may do something better for work relations than the current union situation, though (unions are another argument for another post).
If anyone needs a "bailout," it's the workers who will have nothing after this supposed bankruptcy takes hold, and it wasn't even directly their fault things happened like that. At least at that point, taxpayer money would be aiding the TAXPAYER.
no subject
Date: 20 Nov 2008 02:23 (UTC)"I hold no blame for anyone;
'Twas I who did arrange
To pay my union dues so I'd
Not have to learn or change..." --Todd Rundgren, "Honest Work"